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Tuesday, September 25, 2012

11 Financial Planning Lessons from Our Friend Lord Ganesha :

Lord Ganesha is known to whole world and considered as god of wisdom, remover of obstacles, symbol of happiness, master of knowledge, etc. He is one of the favorite and ever popular Lord among kids as well as grown up people. There are various things to learn from Ganesha’s idol. Today, we will see message being conveyed on financial planning from his physique (appearance).Thiswill help us to gain some insights on financial planning, change our financial behavior and bring prosperity in life.

1) Big Head

Lord Ganesha’s “Big Head” conveys to “Think Big” and out of box during problems. There are solutions to each problem we face in life. We just need to analyze the situation by keeping yourself calm and answer lies within it. Here, Jigisha had taken wrong investment decisions and kept all eggs (investment amount) in one basket (asset class) which turned into losses. Also, concentrated only on one aspect of financial planning i.e. investment planning. She learnt a lesson from her oversight that diversification in asset allocation is a must in today’s market condition which is volatile. She understood with investment planning equal importance is required towards tax, retirement, estate and insurance planning which plays vital role to make a comprehensive financial plan. An important message she learnt is managing debt by planning it ahead and to take investment decisions considering our goals + risk appetite.

2) Small Eyes

The “Small Beautiful Eyes” conveys to “Concentrate” on our financial planning goals. We need to ask questions to our self like: why do I need financial plan? And what are my specific goals with time frame to achieve it? The goals which are identified needs to be prioritized then start working to achieve it. Earlier, Jigisha’s investment decisions lacked specific goals with her investment decisions; she didn’t prioritize her goals and time frame to achieve to achieve them. Now, she maintains a table which has a holistic view on investment decisions with specific goals attached to it as given below:

Priority of goals

Purpose

Amount Required (Rs)

Time-frame

1

Savings for higher education

2,00,000

2 years

2

Purchase two wheeler

75,000

3 years

3

Savings for marriage expense

3,00,000

5 years

3) Large Ears

“Large Ears” conveys “Listen More” to financial advisors/planners. There are interviews and TV shows by financial planners/experts to give insights on financial planning. Take an advice from their discussion and see to it that your financial plan is perfect. If it’s difficult to manage your financial plan then meet the experts to get your financial plan and follow the recommendations as suggested to move in right direction. In past, Jigisha’s financial plan was in clutter situation, took decisions which she thought were perfect for her without taking an advice from experts. Then she understood that her financial planning requires some guidance. So, she turned to me for an advice on financial planning since I was her friend and practicing financial planner.

4) Small mouth

There is a popular proverb, “ACTIONS SPEAK LOUDER THAN WORDS” which means that what someone says is different from what they do. “Small Mouth” of Ganesh ji conveys to “Talk Less” and work on financial plan with 100% dedication and focus to achieve fruitful returns. It is often seen people prepare financial plan and say will start following it from now but after few weeks keep pushing it ahead due to some obstacles.

5) One Tusk

“One Tusk” conveys “Retaining Good and Throwing away the Bad”. It means analyze your portfolio periodically, sell off investments which are into losses and stay invested in assets which are performing well. Interpreting from Lord Ganesha’s one tusk, Jigisha churned out her investment portfolio which was into losses and then she diversified her portfolio which is giving consistent returns of ~18% p.a. from last two years.

6) Trunk

Ganeshji’s “Trunk” conveys “High Efficiency and Adaptability” to evaluate our portfolio on regular basis. There are times in which investor needs to take defensive decisions and diversify investment to fixed deposits/bonds. But, when market looks strong fundamentally then shall take aggressive decisions of investing major percentage into stocks which has potential to perform well in future (long term). Financial planning also requires regular review and continuous progress to achieve the set goals with some adjustments and overcoming the obstacles. In past, when Jigisha’s investment was deteriorating she didn’t review it on time and adapt to the situation. This led to losses in her portfolio. Now, she understood the importance of efficiency + adaptability and keeps a watch on news which could impact her financial plan and investments.

7) Large stomach

“Large stomach” of Ganeshji preach us “to digest all good and bad financial experiences in life”. Overcome from the bad financial experience as Jigisha did and look forward to brighter future by taking right steps from time to time to achieve your set financial goals. Take every bad financial experience as learning by analyzing it and consider yourself one step closer towards the success. Also, don’t be over-confident with good financial experiences and success you achieve while taking financial decisions.

8) Right foot over the left foot

Ideally, we see Ganeshji’s seating posture as right foot over the left foot. This represents using “knowledge and reason to overcome emotions”. Here, Jigisha took an advice (knowledge) of financial planner to take corrective measures on her financial planning and overcome the emotions which she was going through. You shall increase the knowledge on financial planning by reading books, periodical magazines or personal finance newspaper on regular basis to get some guidance from experts.

9) Axe

We see Ganeshji holding an axe in one of his hand. This explains, “To cut off all bonds of attachment”. It means don’t get attached to particular companies/asset class and stay invested even when they are not performing well. For example, Jigisha had invested Rs 1 lakh (i.e. 70% of her investment into equities) in Reliance industries which is not performing well since few years. She had an attachment with stock of this company like many other investors even when price of this stock was declining on regular basis. The ideal decision would have been to take an exit from this stock when prices were declining and invest again when company’s business look brighter in future. Keeping yourself away from attachment with any stocks or asset class (gold, silver, etc) will keep you floated during volatile markets and help to take wise decisions of buy and sell depending on market situations.

10) Mouse at Ganeshji’s feet

Ideally, we see Ganeshji using chariot of mouse for a ride or has a mouse at his feet. This explains, “to keep our desires under control and don’t allow it to take you for a ride”. Desire could be anything i.e. to purchase a car, LED television set, play station for children, an Ipad, latest model of Iphone, etc. While preparing a financial plan, we need to keep a check on desire and actual requirement for it. Keeping desire under control and focusing only on actual need/required things will help to build a realistic financial plan which is measurable and easily achievable for us.

11) Modak and Prasada

Ganeshji loves Modak and offers Prasada to his devotees. This are considered as “rewards of Sadhana (Devotion)” for followers. By, following on recommendations given in a financial plan you will definitely get rewards in form of achieving set goals on timely manner.

1 comment:

Lord Ganesha is known to whole world and considered as god of wisdom, remover of obstacles, symbol of happiness, master of knowledge, etc. He is one of the favorite and ever popular Lord among kids as well as grown up people.family floater health insurance

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